Following analysis of its historical life insurance rates, Standard Life has concluded the cost of cover has fallen on average by 32%. For example, a man aged 40, who does not smoke, would have paid £25.11 per month in October 1997 for 100,000 of cover over 25 years. Today, a man aged 40 would pay £14.42 per month for the same level of cover over the same period, a massive 43% reduction. Over the term of the contract in this particular example the customer would pay£ 3,207 less than their equivalent a decade ago.
Smokers have also benefited from the reduction in life insurance costs, although not to the same extent as non-smokers. Savings for smokers are typically in the region of 23% for female smokers and 25% for male smokers.
Andrew Cook, Protection Marketing Manager, Standard Life says; “Our research shows life insurance has never offered better value, yet half of the UK adult population has insufficient life cover in place. Although increasing commercial pressures and a competitive market has driven prices down on average by over 30% across the market, price on its own is clearly not helping to close the protection gap. People should be thinking about reviewing their protection needs and ensuring the level of cover they have in place is right for their family and dependents. For those who currently have no form of cover in place, now has never been a better time to put in place some financial protection. For many families, this will be more important than thinking about saving or investments.”
Life insurance: News update: July 2007